DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

As Elmer Fudd would say, "Wheat weawwy wawwied eawwy Tuesday mowning." December contracts of all three markets moved 2 cents above Monday's close, not dramatic, but at least something. Corn and soybeans stayed quietly under pressure throughout the overnight session.

Other Markets:

DJIA futures	Higher
U.S. Dollar Index:	Lower
Gold:	Lower
Crude Oil:	Lower

Corn:

Are you ready for this? Okay - December corn mustered only a 2-cent trading range during the overnight session on trade volume (futures only) of 11,500 contracts. As discussed in DTN's Early Word Grains, the most interesting aspect of Tuesday's session could be how Dec corn acts near minor (short-term) trendline support calculated at $3.48 1/4. The overnight low, as it was earlier this morning, was $3.49 1/2.

Soybeans:

Soybeans finished the overnight session lower, though the November contract was able to cut its loss in half over the course of the morning. After dipping below support at $9.54, posting a session low of $9.52 1/2, Nov beans climbed back to $9.55 heading into Tuesday's trade. It will be interesting to see if commercial buying reemerges to provide support. Early Tuesday saw futures spreads mixed, due in part to relatively low trade volume (futures only).

Wheat:

Shortly before the end of overnight trade December contracts of all three futures markets were sitting roughly 2 cents higher. While not dramatic, it was quite an accomplishment given the recent sell-off seen, particularly in Minneapolis spring wheat. Light noncommercial buying interest in winter wheat was indicated by both Chicago and Kansas City futures spreads, while renewed commercial buying could emerge in Minneapolis.

Darincan be reached at darin.newsom@dtn.com

FollowDarin on Twitter @DarinNewsom

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